The fact that you are currently reading another article about cryptocurrencies clearly shows that this investment asset is constantly in the news. There are hundreds of articles trying to give investors a direction on what the cryptocurrencies market is all about, and there are now a number of questions and doubts. In this article, I will try to give convincing answers to the questions and my assessment of the future of these currencies, in order to enlighten investors.

At the moment, the total capitalization of the cryptocurrency market is $ 150 billion, with $ 72 billion being the capitalization of Bitcoin. In addition, there are currently more than 750 cryptocurrencies in the pipeline, with interest steadily rising and new offers (ICOs) in progress.

The first effects of cryprocurrencies

And while most focus on the astronomical returns recorded in 2017 and beyond, I'll start with another parameter. The explosion of cryptocurrencies' popularity has brought huge growth to the FinTec industry. There are now hundreds of companies offering cryptocurrencies and hundreds of companies involved in other phases of production, transportation, security and much more.

FinTech-related cryptocurrencies are literally mushrooming, and astronomical returns are making it easy to find capital. Various celebrities have also said in the game and this is expected to lead to a new rise in the market as the flow of funds and its popularity is constantly increasing. Some of the celebrities who have invested in some kind of cryptocurrency are: Paris Hilton, Mel B and Ashton Kutcher.

The reasons for the huge rise in prices - What do we expect in the future?

The fact that cryptocurrencies have a specific production limit is not a sufficient condition. So the reason is that the demand for cryptocurrencies has risen sharply, which in combination with the "tightness" of supply, has skyrocketed the price. When Bitcoin exceeded all limits, the next coins were taken, and this is likely to continue in chains.

The biggest demand for cryptocurrencies comes from companies or individuals who, due to illegal activity, had no other means of payment. But there are more substantial reasons. For months now, there has been a systematic effort to create some ETFs that run counter to the US SEC's denial.

However, some thought that these obstacles would be overcome and insisted on buying. The big rally of 2017, started when a well-known investment bank undertook to support the creation of ETF, with the result that the first crypto-ETF is now considered a matter of time.

The first ETF, we expect, will bring significant changes in the way the market works. Initially, it will solve an important problem of the Supervisory Authorities, as the ETF, which will obviously be involved in various cryptocurrencies, is institutionally controlled.

Second, creating a more transparent market will increase investment interest and that means new money will come in. History teaches that new ETFs will follow, and there are rumors that there are plans to buy options. Huge bet for a market of this volatility, but a necessary cover for the companies that will issue the ETFs.

All of the above means that the cryptocurrencies market has significant growth margins, which could exceed 600%. This means that there will be new "currencies" that will perform deafening odds, possibly surpassing Bitcoin.

How can investors find the next "currency" that will outperform?

As the market size of cryptocurrencies grows, so do more traditional tools to discover the next possible move. At the moment, there is a great way, which gives significant chances for the discovery of the next coins that will rise, as from the 750 that exist, it filters and leads to the possible 10 *.

What are the chances of it being declared illegal?

All the criticism of cryptocurrencies has to do with the fact that criminal capital can be "cleansed" by erasing traces and with the fact that central banks are losing control.

Let's look at it a little more penetratively. A new product, a substitute for money, may have caught the central banks asleep. However, it is certain that they later discovered its usefulness. For the time being, drug dealers and arms dealers may be using it for transactions, but the future is not so positive for them.

Many are already using cryptocurrencies to "launder" or "justify" funds. They all leave their mark. Central banks and governments will know in a few years all those who have legalized illegal money. And that information is useful to governments.

The ban from China was followed by a warning from the British FCA and new bans are likely to follow. In the short term, the impact will be large fluctuations. In the long run, however, there is an opportunity for more control in this market and greater discarding. And as I described above, the greatest control will come by creating better market conditions and greater institutional acceptance. That is, creating investment products.

Six major investment banks have already set up a platform that will try to link cryptocurrencies holders to a centralized system, as banks connect their depositors with their accounts and credit cards.

Now, when it comes to the "money substitute" category, it's good to remember that precious metals are also a substitute for money. However, they are not illegal, but regulatory controlled. A common denominator is regulatory control.

Judging by all the above, the probability that I estimate that there is a market for cryptocurrencies is minimal. It does not mean that some cryptocurrencies will not be illegal or scam as we usually say in the language of the market, but the market will continue to exist.

All of the above will gradually lead to the elimination of the huge fluctuations of this market, its contraction (numerically) and then the foundations will be laid for an investment asset that will be added to the quiver of investors.